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. You receive the following quotes from a foreign exchange dealer: AUD/USD 1-year forward rate GBP/USD spot rate AUD/GBP spot rate 1.114 0.522 2.1545

. You receive the following quotes from a foreign exchange dealer: AUD/USD 1-year forward rate GBP/USD spot rate AUD/GBP spot rate 1.114 0.522 2.1545 The USD 1-year interest rate is 3% p.a. and AUD 1-year interest rate is 1.5% p.a. a. What is the 1-year forward premium/discount of AUD/USD, assuming no arbitrage opportunity? (3 marks)

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